Bitcoin Could Outlast Dollar, Says Bitwise’s Jeff Park

Park’s comments come in light of a major liquidity rupture in the bond market, which revealed growing stress in short-term funding. He described this as “an actual truth to grapple with,” underscoring Bitcoin’s potential in comparison to the dollar.

The remark followed an overnight shift in market conditions, notably the SOFR-Fed Funds spread, which fell to -3.46 basis points. A negative spread typically signals liquidity stress and is often a precursor to broader market volatility.

Liquidity Stress Signals Growing Concerns in Traditional Markets

The decline in the SOFR-Fed Funds spread is just one indicator of a deepening liquidity crisis, as multiple financial metrics align to show increasing tension in the markets. Park pointed to these signals, such as hedge funds deleveraging and rising Treasury yields, amid mass selling of traditional risk-off assets. With traditional safe havens like Treasuries showing weakness, Bitcoin could be positioning itself as a safer, more stable alternative in uncertain times.

Spencer Hakimian, Founder of Tolou Capital Management, described the market’s reaction as a “liquidation spiral” after a breakdown in the 10-year yield market. Forced sales of U.S. government debt further stressed the bond market, revealing the deepening fragility in traditional assets.

Global Trade Instability Amplifies Bitcoin’s Appeal

In addition to market turbulence, President Trump’s ongoing trade war has compounded the situation. The U.S. has now imposed tariffs on over 60 countries, including major economies like China, the EU, and Japan, with some levies exceeding 100%. These disruptions, coupled with China’s retaliatory measures, including rare earth export restrictions, have added further instability to global supply chains.

READ MORE:

U.S. Shuts Down Crypto Crime Unit as Trump Shifts Focus to Investor Fraud

Luke Broyles from TheBTCAdviser pointed out that the lack of demand for bonds, coupled with a 30% Bitcoin drawdown, highlights the continued decline of traditional safe havens. Broyles maintains that Bitcoin is better positioned to outperform equities and bonds amid this evolving economic landscape.

In light of these developments, Bitcoin appears to be emerging as a more resilient asset, potentially overshadowing the dollar and traditional financial instruments as investors seek refuge from growing market uncertainty.

The post Bitcoin Could Outlast Dollar, Says Bitwise’s Jeff Park appeared first on Coindoo.